The Government is on a collision course with public sector workers including nurses and teachers after announcing pay rises which were attacked as a real-terms wage cut.

One union leader warned of co-ordinated strike action in response to pay announcements by ministers.

More than one million NHS staff, including nurses, paramedics and midwives, will receive an increase of at least £1,400 with lowest earners to receive up to 9.3%, while dentists and doctors will get a 4.5% pay rise, police 5% and teachers between 5 and 8.9%.

Health unions said the announcement amounts to a real terms pay cut.

Unison general secretary Christina McAnea said: “Ministers seem intent on running down the NHS, showing scant regard for the millions of people languishing on waiting lists for tests and treatment.

“Rather than save the NHS with proper investment in staff and services, those vying to be the next prime minister want to keep back the cash for pre-election tax cuts.

“Fed-up staff might well now decide to take the matter into their own hands.

“If there is to be a dispute in the NHS, ministers will have no one to blame but themselves.”

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